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California Mortgage Company Owner Guilty of Real Estate Fraud
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EDITOR’S NOTE: Because of the intense and often off-topic nature of many of the comments left for this blog entry, commenting for the particular blog entry has been turned off, and all unrelated comments have been deleted.
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An Orange County, California, man who ran a mortgage company called Mortgage Capital Resource Corporation (MCR) has pleaded guilty to federal wire fraud and money laundering charges related to a real estate scheme that cost lenders more than $9,000,000. According to the FBI, Kenneth Ketner, 57, of Newport Beach, CA, has plead guilty to the two felony counts in federal court in Santa Ana, and now faces up to 15 years in prison.
A second defendant in the case, real estate attorney Allen Johnson, 59, also of Newport Beach, pleaded guilty last year to wire fraud and money laundering for his role in Ketner’s scheme, and is awaiting sentencing.
Drawing on lines of credit from commercial lenders, Ketner and MCR professed to fund home loans for borrowers throughout the United States. Rather than using the commercial lenders’ money to fund mortgages as promised, Ketner, with Johnson’s help, diverted the funds for his own personal use (he used the money to operate his firm and to pay personal expenses, such as car, credit card and boat payments).
To conceal that he misappropriated the money, Ketner caused MCR to find new loans that lenders would agree to fund. He then used that money to pay off the original borrowers whose funds he had misappropriated, thereby keeping the scheme alive.
Ketner pleaded guilty before a United States District Judge last week, and is scheduled to be sentenced in December. The charges of wire fraud and money laundering carry a maximum possible penalty of 15 years in federal prison, but a plea agreement in the case could mean that Ketner would receive a sentence of just five years behind bars.
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EDITOR’S NOTE: Because of the intense and often off-topic nature of many of the comments left for this blog entry, commenting for the particular blog entry has been turned off, and all unrelated comments have been deleted.
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Filed under: California,Mortgage Fraud,Real Estate Fraud,Uncategorized
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It seems that there is justice in this world after all. Ken Ketner has been on the other side of the law for many years, he finally just got caught.
Comment by Anonymous — August 11, 2006 @ 5:21 pm
The funny thing is Ken Ketner started a new mortgage company while this case has been going on, Segway Financial. It still boggles my mind that the courts either simply did not know or allowed this. He was not on record, but runs the company as a consultant. At Segway he continues his agressive and deceptive mortgage schemes. Crazy!
Comment by Anonymous — October 6, 2006 @ 10:50 am
The anonymous comments are unfounded and untrue. Segway Financial is a legitimate company run by legitimate people. There is no basis for their facts as they claim. This is mere slander… nothing else. If you have any issues with our integrity, please feel free to contact me and I would be happy to provide references upon request.
Comment by Pamela Stewart — November 21, 2006 @ 4:04 pm
I think everyone close to the case knows about Pam Stewarts personal motivation behind her comments. She is loosing more than a business partner. Many know that Ken Ketner’s name is all over Segway financial including payroll checks and that he and Pam allow unlicensed representitives to originate loans. That makes the October 6th writer correct. And now they have taken it a step fruther by hidding Segway in another one of Ken’s company’s, Key Mortgage. What really boggles my mind is that title companies, escrows and lenders continue to do business with these two for the sake of a dollar and that Pam obviously doesn’t know the meaning of intergrity.
Comment by Anonymous — December 12, 2006 @ 7:54 pm
Another anonymous comment with untruths and lies. These comments are being made with no basis or factual information by people who don’t have the courage to disclose their identity. Whoever is making these unfounded comments should have the decency to disclose who you are and the truth would be shown in the proper format.
Comment by Pamela Stewart — December 14, 2006 @ 3:02 pm
What was the sentence given to him? Whatever it was it is not enough. Bottom line is he is an admitted thief and I’m happy to see that it was finally uncovered for all to see
Comment by anonymous — December 15, 2006 @ 3:18 pm
Why hasn’t this man been sentenced yet? He was supposed to be sentenced on December 4th but records show that he was traveling to New Orleans in December well after the 4th. Does anyone know
Comment by Anonymous — January 11, 2007 @ 11:58 am
Can anyone tell me about his marketing practices and the way he does business?
Comment by fire — January 14, 2007 @ 6:54 pm
Is anyone up to date on this subject??
Comment by comment period — February 3, 2007 @ 11:48 pm
Per court records this guy got another continuance and is now scheduled to be sentenced in May of 2007. Odd to me that if his assets have been seized since they were obtained with stolen funds and he does not have money hidding anywhere, why isn’t anyone questioning where the funds to pay these attorneys for years now are coming from.
Comment by Anonymous — March 13, 2007 @ 1:53 pm
I have seen one of Segway’s marketing letter. It fools the borrower by putting the current lender’s name and address in the upper left side. Claims they can “renegotiate” the interest rate to 1%. Comes in KMC letterhead and has a different broker number, but when you call it goes to Segway Financial in Newport Beach.
Our government should be protecting us from this!
Comment by Anonymous — April 2, 2007 @ 5:11 pm
I have read all the comments and I don’t think that anyone really knows everything that Ken Ketner is involved in, but he definitely has a financial interest in Key Mortgage in Arizona. I don’t know how they “launder” the money and how he gets his profits, but the fact that makes a large sum from that partnership is well known. Our legal system must somehow protect Key Mortgage from being investigated by the FBI without “probable cause”. I wouldn’t be surprised if somehow his daughters are involved in diverting income to Ken. Pam Stewart is just a puppet for Ken Ketner, again there are allot of people that know who’s actually pulling the strings at Segway. Ms. Stewart is not only his front person at Segway, but his mistress as well. Ken not only has his wife, he has his mistress, and he has his girlfriends that he keeps aside from Pam and his wife. He is the ultimate con man. He didn’t only manage to con his employees, the warehouse banks he stole from, he is still conning his wife and mistress it’s amazing what money gets you. For a short ugly guy he sure seems to have enough money for all the women in his life. Yet he is smart enough to not show anything in his name. The house he lives in is owned by his bookie. I would hope that the FBI knows that, but for some legal loop hole can’t act on it. Again this is not a well kept secret, I would say it is common knowledge. Ken has spent a fortune on attorneys and has figured out how to beat the system for many years. He leads an extravagant lifestyle and yet shows little income, perhaps some of the funds are diverted through his wife’s chiropractic business. Now Ken has apparently conned the judge in his case granting him continuance after continuance. It seems that he has also conned his therapist or paid him big bucks to allege that his lack of ethics, morals and any kind of human decency is caused by his drinking. He doesn’t have a drinking problem, he has a problem being honest and will say anything and hurt anyone he has to protect himself. Allegedly the judge in his case is now granting him time off for good behavior for not drinking. He is the ultimate con man.
I hope that all of this will catch up with him soon and that his flow of cash is discovered and stopped, that is allowed to spend many years paying his debt to society for all his evil deeds. He is incapable of feeling any regret, other than perhaps regretting being caught this time. However if his million dollar attorney gets his way Ken will not serve a day in prison, but will be granted permission to live in a half way home and work for a non profit as it’s CEO. If this happens it will the proof again that money does buy freedom
Comment by Anonymous — April 2, 2007 @ 8:26 pm
Tomorrow is the first day of May, the month that Ken Ketner is supposed to be sentenced after numerous delays, will this be the month that justice is finally served and he is sent to prison? Or will this be the month once again that he makes fools out of the judge and the whole judicial system by getting off with just a slap on the wrist.
We can only wish that the judge will finally tell Ken Ketner , no more!! You did many very bad things and ripped off a whole lot of people, and you now have to pay your debt to society
Comment by anonymous — April 30, 2007 @ 8:56 pm
Lets think..9 Million dollars, time in a half way home and a top position in a non-profit company….This may be an example of
what mortgage fraud can cost the criminal..
Comment by comment period — April 30, 2007 @ 11:26 pm
Well everyone, I am sure that it will come as no shock to those who know the infamous KK, that he has yet again received a continuance to his final sentencing hearing that was rescheduled originally for May 7th, 2007. The good news is that according to court records the government appears to have had their fill of the ongoing drama and fought against this continuance but unfortunately lost.
It turns out that part of the plea deal was that Ken was required to file his tax returns for 2001, 2002, 2003, 2004 and 2005 no later than February 1, 2007 and pay all delinquent taxes plus penalties due. Again, I am sure none of you are shocked to find out that KK chose to believe that he continued to be above the law and waited to file the taxes until February 6th and of course did not pay ANY of the taxes or fees that were due (An amount that is over $600,000). In April the government was informed that he had not made any attempts to pay the taxes and penalties due at which time they reminded him of his plea deal. Since the time of him being “reminded” in April of the agreement. he has paid over $400,000 towards the taxes and penalties (Again I ask why isn’t anyone from the government asking where this money is coming from) but has not repaid the debt in full.
The government presented a sentencing position,as a result of KK’s choice to not honor the full agreements of the plea, to institute the maximum allowable term of incarceration as per the plea agreement on April 23rd, 2007.
KK and his attorneys responded to this matter requesting another continuance based upon the fact that they now feel that the GOVERNMENT violated the plea agreement by pointing out to the courts that KK did not comply with the terms of the original agreement by requesting the maximum sentence be imposed.
The government at that time submitted paperwork requesting the courts deny the continuance for several different reasons which basically boil down to it has been long enough and this is all just a bunch of B.S.!
Now I am not an attorney, nor do I have any legal training background but the paperwork that is public record on these items is written pretty clearly. I have merely done a quick interpretation for everyone’s edification.
So here we are with the sentencing again being postponed until June 11, 2007 with a hearing to be held on June 4th to discuss the fact that now everyone is saying that the other has breached the original plea agreement. The judge that granted the continuance is the same Hon. James V. Selna.
My personal opinion is of course enough is enough. If KK is truly remorseful for what he did and if had to do with his drinking (Which I personally am not gullable enough to believe as he was not drunk when he was funding the exact same loans on multiple warehouse lines for the same property ) it is now time to pay the piper….Part of remorse is accepting the consequences of your actions. I find it personally offensive that my tax dollars continue to be used to fund the ongoing court expenses instead of just putting a fork and it and being done already but it is what it is.
So the saga is left with to be continued until June 11th at least……………….
Comment by Anonymous — May 4, 2007 @ 12:54 pm
Does anyone have a recent picture of Ken? Can you post it??
Comment by comment period — May 15, 2007 @ 10:51 pm
Has Allen Johnson been sentenced yet? He plead guilty way earlier than Ken, right? That just goes to show our justice system and it’s screwed up ways! Question – once Ken has gone to jail, will anyone that comes to this site have absolutely anything to do??
Comment by Anonymous — May 29, 2007 @ 6:55 pm
Is KK’s sentencing still on the schedule for June 11th ? Anyone know?
Comment by Anomyous — June 10, 2007 @ 5:42 pm